closing bell holding onto its gains. only up less than 1/10 of 1%. the nasdaq firmly in the green, up about 0.8%. the dow down about 0.4%. gold, oil, and cover all down on the day. thean look and see, in treasury markets, still seeing a little bit of selling pressure. scarlet: what really gets my dollar strength today, gaining almost 1% versus the japanese yen. dollar strength seems to have returned and is not going away. theatter what happens with

oil markets, the energy markets, saudi arabia cutting an additional one million barrels per day. fact thatt change the the demand has collapsed. even changes like that don't seem to change the trajectory of what we are dealing with in the oil markets. still with us is chris ailman of calstrs. positioning to hedge against another, like, down in the market? of ourit is a big chunk market portfolio. 10%. we are still keeping our fixed income. for us, it is really all about diversification. we are underweight global equity. we think this market will have some weakness. going into the last couple of weeks, these rallies back and

forth, we have repositioned our equity portfolio to be more defensive. , cash isilt defensive king. as return on cash is trash, ray dalio likes to point out. but, liquidity is king. we are seeing equity portfolios already coming out from the disruption, people who need bridgeeople need financing. nice strong returns. and, just the dichotomy in the market. the indexes giving returns. the stay-at-home stocks are all at new highs, leading this market. the traditional go to work stocks are crumbling. oil is flat because there is just no demand.

mentionedou kind of something about credit a minute ago. i wonder if you do see some opportunity for investment in private credit. will that be a little bit of a yield play for fun this that may be can't -- play for funds that can't find it? chris: for institutional investors, that will be an investment opportunity. you already aired private equity firms immediately ask all their portfolio companies to tap credit lines to ramp up on liquidity. we are seeing some of the middle-market companies that had some financing come back and start renegotiating to extend that. in the 2008 crisis, you really did see equity opportunities, real estate, where you could buy businesses at discounted prices.

this one has very much the debt offering, where people need to borrow money to bridge through .his crisis as you get into the summer, you could have more and more companies. the retail, oil industry, certain anything in the consumer goods industry, need additional financing. here are not going to go rushing back into the mall. scarlet: we see that already with the places that have reopened. a lot of money is flowing into public assets. i wonder, are these investors a little bit late to the party here? private assets are illiquid, hard to exit, and frankly, they are pretty cyclical. you talk about how a lot of these retail companies will get the foot traffic that a lot of people anticipate.

they have really yet to see the fallout. you are seeing sticky prices because you are mentally anchored to business back in february. in a retail mall, none of the tenants will pay rent. in an apartment complex, let's say 50% of your apartment complex will not rent for two or three months. you are not going to kick them out. they will stay. how do you manage that? does that mean this year is a 20% write down. they are looking at the lows and they suddenly see the rebound in april. does that mean a folio company is down, or is it just barely -- 15% or so off the highs in february. are these companies still worth

down? 10% write it will be slow in equities. they don't want to write it down aggressively because we all have to hope the economy will come back. i want to get your thoughts about this move we saw in futures markets last week. hereipating negative rates in the u.s. we heard from several fed thatials basically saying is not happening. i'm curious whether you thought we would get to that level, where we would cross the lines

to where the nominal rates did go negative and how the market would react if that did happen. chris: the head of fixed income said, no, you can't go negative. i have textbooks from college saying there is no such thing as negative interest rate. i would love to say, no, it is not going to happen. i was very surprising last week. the fed can't control the long end of that market. end 10 year trading at these rates -- i have to think we have learned from europe, that negative rates are not effective. disincentive to savings, disincentive to cash in the bank. scarlet: negative rates, if we get it in the u.s., will it play out the same way as europe and japan? chris: the u.s. economy is

different but we have two prime examples of developed nations where negative rates did not help the economy, did not stimulate any growth. i think that the view at that point was dollar weakness, which hurts the trade side. the international trade is just frozen. even china, as it has reopened, has found international trade so weak that there are not the orders or the demand coming in. to me, it would really compound the problem. obviously, the equity market is not envisioning that at all at this point. scarlet: it is not, especially with the s&p, little change but at a two-week i. chris sees the market in a

trading range, the s&p 500 between -- that does it for "the closing bell." "what'd you miss?" is next. this is bloomberg. ♪

♪ romaine: i am romaine bostick, joined by scarlet fu, broadcasting from our homes in new york. this is "what'd you miss?" lower,: we did open

nearing losses in europe and asia, but it did not last long as u.s. stocks made a comeback. the s&p 500, the dow still down but tech leading the come back here with the nasdaq 100 rising from a sixth straight day. when you look at the oil market, we have seen oil prices the race earlier gains. they had gained after saudi arabia said that it would add voluntary production cut of one million barrels a day. the backdrop is that saudi arabia is tripling its value -- the move comes as the kingdom deals with two crises, the lockdown of course, and the plunge in oil prices. joining us with more, bloomberg intelligence's chief credit strategist. arabia'sds like saudi

austerity plan. >> you are right about tripling the vat tax and losing the cost of living allowance. but, really, it is other things like the lost revenue from robin on, -- from ramadan, pilgrimage to mecca and medina. the government has few options other than adjust fiscal policy, liquidate reserves, issue debt, or devalue the currency. we saw reserve depletion in march by saudi arabia, the highest monthly drawdown in 20 years. romaine: what does this mean in terms of the investment outlook into saudi arabia. obviously, there has been a lot of interest not only from the equity perspective, but from the debt perspective. damian: debt and saudi arabia is

still relatively low compared to peers. while reserves have come down from as high as nearly 490 billion, it is still relatively high. gdp will climate the slowest rate since the 1980's. it is interesting to note, there has been a lot of talk just given the move on the short end of saudi arabia's curve. yieldsh forward implied have not spiked nearly as high since when oil prices collapsed previously. that shows to me that oil prices are not as concerned about a break of the peg. as scarlett rightly mentioned, the dual impact of low oil prices and virus induced stimulus. but it seems like saudi arabia is most prepared to get through it.

scarlet: we know they had plans to diversify the economy. do we have an idea of how that is going. to the extent that the kingdom has control over it, is it still proceeding as planned? damian: the money that has been allocated for vision 2030 has run away but that does not mean they will take a hard turn. the matter is, it shifts the economic burden. ofto those more capable bearing the costs, monthly goods and other items. it is really no surprise they would opt to go down this -- scarlet: we have got to leave it there because president trump is speaking right now, delivering remarks in the rose garden. pres. trump: the core element of our plan to safely and gradually

reopen america. we are opening, we are starting, there is enthusiasm like i have not seen in a long time. every american should be proud of the array of skill every american has brought to this challenge. the fda has authorized more than 92 different test, and over 9 million have been performed here in the united states. three weeks ago, we were conducting roughly 150,000 test per day. now we are doing roughly 300,000 test per day, a 100% increase. , the united states will pass 10 million tests conducted, nearly double the amount of any other country. we are testing more people cap than south korea, the united kingdom, france, finland, and many other countries, and in some cases, combined. friday, the fda authorized an

alternative testing technology that can be much more readily manufactured. the corporation that makes this new test estimates that it will be able to manufacture 150,000 tests per day, immediately increasing the 300,000 tests per day within just a few weeks. 's further expand our nation testing capabilities, we have got this all approved of it is all done, we are sending $1 billion to america's states, territories, and tribes. the money is going out. this major investment will ensure that america continues to conduct more tests than any country on earth by far. thatd from the beginning the federal government would back of the states and help them build testing capabilities and

capacities. that is exactly what has happened this partnership truly flourished. we have had a good relationship with the states, governors, other representatives within the states. a relationship like i believe i can honestly say has not been seen in this country for many years. the governors and us are working together very closely, not only on testing, but on ventilators. we are sending ventilators, as you probably heard, from other countries, many thousands of ventilators because they are in tremendous need. i think building up a lot of goodwill. much more importantly, we are saving a lot of lives. most states are now doing a great job. locatedistration thousands of machines. government is also

supporting states with vital supplies, quick approvals of tests, and one-on-one coaching at the white house on how to increase capacity and increase it very quickly. we have held multiple calls with every state, including with d.c. and puerto rico. we have jointly developed testing projections and go for each state for the month of may, total 12.9 million tests. myay, i am announcing that administration will provide the collection supplies to help states meet their targets, and meet them rapidly. deliveredhs will be 12.9 million swabs to states nationwide. we already have them. the delivery will be very quick. we are preparing to provide additional swabs if any state is on a pace to surpass their goal.

my ministration will also provide approximately 9 million transports can be used for transport swabs to the lab processing. as a result of these actions, every state will be able to test more people per capita in may alone than south korea has tested in four months since the outbreak began. this major commitment is possible because of a massive mobilization of industry, including puritan medical products, abbott labs. some of these incredible companies produce rapidly for us, and their product are here with us this afternoon. these were literally just developed. these are the best machines, the best equipment we were in the world, and other countries are calling us and we are trying to work as much as we can not only

on ventilators but also with testing we continue our tireless effort to begin testing in the most underserved communities. leadingrivate sector, retailers are now operating over 240 testing sites across the country, and that is in addition to all the other sites that we have working. located inse are communities with unique vulnerabilities. there will be more than 300 sites by the end of this week and retailers are making plans to open up hundreds more locations within the next 30 days. these additional sites are helping us ensure access to testing. my administration is fighting relentlessly to protect all citizens of every color and creed from this terrible virus. in addition to vast amounts of testing supplies, my administration has partnered with the private sector to coordinate the delivery of more

than 90 million n95 masks. these are of the highest quality. many are made here in the united states. 180 6 million surgical masks. likewise, many are made here. shields, 21ce million surgical counts, 10,000 ventilators. we are building thousands of ventilators across our country. this global pandemic has inflicted great pain and hardship on our people. it should have never been allowed to happen. it should have been stopped at the source. life thefor every virus has claimed, and we share the grief of all of you who have lost a loved one. that goes worldwide. 184 countries at least. thanks to the courage of our

citizens and our aggressive strategy, lives have been saved. if you look at on a per 100,000 part, we are at the best of the pack, right at the bottom. germany and the united states are leading the world in lives saved per 100,000. for every challenge, hardship, and danger, america has risen to the task. we have met the moment and we have prevailed americans do whatever it takes to harness the energies we need to achieve a total victory. day after day, we are making tremendous strides with the dedication of doctors and nurses. these are incredible people, brave people. these are warriors. with the devotion of manufacturing workers, food suppliers, and with the profound patriotism of the american

people, we will defeat this horrible enemy, we will revive our economy, and we will transition into greatness. that is a phrase you will hear a lot because that is what is going to happen. we are going into the third quarter and we are going to do well. in the fourth quarter, we are going to do very good. next year, i think we will have one of the best years we have had. there is a tremendous pent-up demand. it is a demand like i don't think i have ever seen. it is a pent-up demand. there is a spirit in this country like you have seen. i think you can say -- and we have helped a lot of the countries a lot. there is a tremendous spirit all over the world to beat this terrible, terrible thing. we are transitioning to greatness. thegreatness will be in

fourth quarter, but it will really be next year. as good as we have done him and we have done great. we had the best economy in the history of the world, not just here. you can talk china you can talk any other country. we were going for numbers, whether it was unemployment numbers, employment also, a little different, where we had our best numbers. almost 160 million people. we had the greatest stockmarket numbers ever. 42 days where we set records. in a short period of time. military, all built in the united states. $1.5 trillion-plus. on the southern border, the wall is being built rapidly. now, you don't hear the opponents talking much about the

border. they don't like to talk about it because it seemed we are right on a lot of things. one of the many things we were right about is the border. we had one of the past weeks in the history of our border between the united states and mexico. we had very few people coming in almost record low numbers. the wall is being built. it is being built rapidly. people don't talk about it anymore. the area where the wall has built, we want to be up to 450 by early next year. overshortly after that, 500 miles will be completed. he has had a tremendous impact. again, we have had the best numbers. is last thing we want now pandemic is for people to come

across our southern border. we are doing record numbers, meaning record low numbers. i want to thank everybody and i want to introduce the admiral. then brad smith. they are going to do a little explaining as to what we have done with testing. scarlet: you are listening to president trump speak at a rose garden press conference. he did say that the u.s. will send $1 billion to states and tribes for tests. earlier, the white house said they had planned to distribute $11 billion in state test funding. blackrock will do a stock buyback, buying the shares directly from pnc as pnc will exit its full investment in the company. blackrock will buy back those shares. it will be about 1.1 alien dollars. blackrock buying shares back

from pnc. if you want to continue watching president trump, it is available in life go. this is bloomberg. ♪ s bloomberg. ♪

romaine: a lot going on with the supply chain here in america and around the world. the trump administration looking to develop -- looking to jumpstart the development of ship factories in the united states. factories in the united states. joining us is lisa anderson, founder of a consulting firm that specializes in manufacturing strategy and end to end supply chain transformation. i want to start broadly here with the u.s. supply chain and some of the disruptions we have shutdown,he covid-19

a lot of the distortions we have seen as every nation tries to deal with the virus in its own way. what has been one of the weaknesses you have seen, and do you think that weakness could be repaired once we get to the other side of this crisis? lisa: the largest weakness is the misalignment of demand and supply. small changes in demand are exaggerated as you get further and further into your supply chain. had more than small changes in the demand with the pandemic. in essence, demand and supply have got completely out of whack. reverberatingd throughout the supply chain,

creating shortages over and misalignment. yes, we absolutely can recover from this. to get our demand and supply back into alignment. depending on the industry and several factors. scarlet: so, this bullwhip effect, does that get mitigated or addressed if we bring our supply chains back home? what it does is it brings it into alignment quicker. of -- is theffect lengthy lead time that we have asia, and alls., along theferent steps

way, for example, if the ocean carriers have containers where they need to be. theust eliminates a lot of disruptions happening in between shortens theit lead time. that is what it does to get it into alignment quicker. romaine: how realistic is it? let's say a midscale kind of manufacturer came to you, a manufacturer primarily relying on asia for a lot of its components and assembly. if they said, help me come up with a way to do this in the united states, is there a cost-effective way for them to do that which would not lead to the end product being substantially more costly than

what we normally would pay for it? lisa: that is a good question, and also the timing. it is not as if you snap your fingers and all of a sudden your supply chain is in the u.s. the total cost of producing in for come into alignment non-commodity products. it depends on what type of product you are talking about. but, for noncommodity products, and in somegnment cases, it is more advantageous. this is the total cost, not just the cost of labor, which is clearly less expensive in asia. you do have to invest capital and you do have to start up manufacturing or partner with someone.

ofis still not a matter snapping your fingers but there are quite a few things you can do to get that going near term. scarlet: which industries do you think are in a better position ?o bring supply chain's home does it require manufacturers getting over the idea that manufacturing certain parts is -- lisa: there is different things to look at. there are certain industries that are -- certainly, the ones that add a value to their products, which a lot of industries really do that, are going to be more advantageous when you look at the cost equations. the other piece of this, which ones are integral -- have a rapid or want a rapid rnd process, meaning how quickly we

can bring things to market and we can trial new products. too, ones that are critical our infrastructure or -- there are a lot of factors when you think about which ones to bring back or maybe what sequence or order we to bring them back. to be honest, it is not appropriate to bring back everything. it would be overreacting in the other direction. making a good decision based on as well as these other factors that i am bringing up. anderson, lma consulting group founder and president. thank you very much forgiven us a glimpse into the supply chain challenges of we were to bring that home. let's get you to first word news with mark crumpton. mark: the white house has

ordered everyone entering the west wing to wear a face mask. bloomberg has learned a memo was sent to staff today. they said employees do not need face coverings while working at their desk. last week, vice president pence's secretary tested positive for the virus. the vice president briefly isolated himself over the weekend but he returned to work on white house grounds today. new york mayor bill de blasio today addressed the likelihood of reopening in the near future. cases are still a major factor. >> it is may 11 today. what we can see in the case of both indicators is the likelihood right now, unless something miraculous happens, we are going into june. i think it is fair to say that when june is when we will potentially be able to make some real changes. mayor --mark: mayor de

blasio added those changes can take place "if we continue to make progress. essentially -- the world health organization's emergency chief, dr. michael ryan, praised germany and south korea for robust tracing measures but called the lack of preparation by some other silly.es global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am a mark crumpton. this is bloomberg. ♪

you backwe will take to the white house right now, where president trump is answering questions. pres. trump: 15 minute test, for example, the albert -- the abbott laboratories test. these are things that did not even exist a short while ago. so, we do have a great testing capability. speaking --erally we had a call with the governors the other day. without exception, they were all extremely happy with what is going on with respect to their testing. -- reporter should people be told to go back to work? pres. trump: we are leaving that up to the governors. if something is wrong, we will

stop it. some are being not aggressive enough, in my opinion. some are being a little bit aggressive but they are careful. the country has learned a lot, about social distancing, washing your hands, other things we have all learned and talked about. just about everybody has a face mask on. they have learned about face masks, the good and the bad. our country has learned. our country has been incredible. the numbers are dropping substantially around our country. so, we leave that up to the governors. i think they are making a lot of good decisions. we have had, like i said, a great relationship with governors, democrat and republican. i think that overall, they are making very good decisions. that is interesting. please.

reporter: you said in your comments earlier, we have met the moment and we have prevailed. is the mission accomplished? pres. trump: we have prevailed on testing is what i am referring to. you never prevail when you have ,0,000 people, 100,000 people when you have 80,000 people as of today. the kind of death you are talking about, when you have potentially millions of people throughout the world that are dying. what i am talking about is that we have a great testing capacity now. it is getting even better. there is nobody close to us in the world. we have certainly done a great job on testing. and testing is a big, important function. some people consider it more important than others. but testing is certainly a very important function. we have the best equipment in

the world. reporter: there are a variety of reports that chinese hackers are attempting to steal technology related to vaccine research. is this something you are concerned about? else is new what with china? i not happy with china. they could have stopped this at the source. now you're telling me they are hacking. we are watching it very closely. reporter: the south china morning post says that china would like to reopen negotiations on the trade deal to make the terms more favorable to them. is this something you would be interested in doing? pres. trump: not at all. not even a little bit. i had heard that, that we would like to reopen the trade talk to make it a better deal for them. china has been taking advantage of the united states for many

years, for decades, because we had people in this position where i am standing, sitting right in the oval office, allowed that to happen. i am not interested in that. let's see if they live up to the deal that they signed. what are your thoughts about a second round of direct payments to americans as included in the house bill? pres. trump: i want to see a payroll tax cut, various things that we want. we are talking about that. we are negotiating with the democrats. we will see what happens. as i said, it is a transition. this will really be, in my opinion, i think it is going to be something that is very special. it is a transition to greatness. greatness is next year, right from the beginning.

i view the third quarter as a transition quarter. could be pretty good. toward the end of the fourth quarter of a you will be tremendous, i think. next year, you will see numbers that are potentially the kind of numbers you saw before and maybe even better. there is that pent-up demand. a lot of people wanted to do things and have had to hold back because of the virus. i think you will have a phenomenal year next year unless somebody messes it up by coming along and raising taxes, like a certain party, namely the democrats want to do, you will mess it all up. we had the greatest in the world. this administration presided over it. it got great for a reason. we'll do it again, and we will do it again very quickly and easily. everyone in the

rose garden is wearing a mask today. why haven't you required everyone at the white house to wear masks before now? pres. trump: if they are a certain distance from me or a certain distance from each other, they do. -- i am not close to anybody. i would like to be close to these two gentlemen. they are very hard-working. if you look at all of those people over there, every one of them, from what i see, these are white house staffers, white house representatives, white house executives. just about everybody i have seen today has worn a mask. reporter: were you the one who required that? pres. trump: i did. reporter: you are now promising that everyone who needs a test will be able to get one at some point soon. can you give us some figures on

what you are changing to ramp up testing. when will that be a true statement? pres. trump: it is a true statement already. into alet admiral go little bit of the future. >> when you look at the testing numbers, not just with the governor but with the state health officers, state epidemiologists, public-health labs, it is really a combination of testing those who need something from diagnosis, tracing, but the largest fraction of that is really moving into surveillance. are is, testing those who asymptomatic. when you do the numbers, this amount of testing really is in the range that we need to accomplish all of that, certainly within the range that we need. the other thing i would say is,

particularly as we move into the summer, there are surveillance mechanisms, like a weather radar. just think about that weather radar. the influenza-like illness network, which is at about 75% of health care institutions, and syndromic surveillance, so if we see a blip on the radar, with cdc personnel and contact tracers, we really run to the fire. that is when you detect, you trace, and you shut off that outbreak right when it starts. there does seem to be a double standard where members of your own staff can get tests frequently whenever they need it but ordinary americans cannot. the rest of americans get access to that testing? pres. trump: if you did not get the tests in the white house,

you would be up complaining. i understand you very well, better than you understand yourself. if we did not get tests done, he would be complaining about the fact that we did not get tests done. now that we are doing so well on tests, you are complaining that we are getting too many tests. many americans want to return to their normal lives but they are afraid to do so. how can you ensure americans that they are safe to go to their own workplace when the most secure workplace in the country, the white house, cannot contain the coronavirus? person,ump: we have a something happened right after a test was done. three other people met that person, came into relative contact, and they are self-quarantining. i think we have controlled it very well.

we have hundreds of people a day pouring into the white house. complex,assive office including the large building right behind us. i think we are doing a very good job in watching it. i think it is very well contained. it is because of all the tests we have been able to give. it has been one person and the other person -- they are quarantined for a specific person. the reason is that they were in the general proximity of the one person. and the one person, i believe, will be fine. vice president pence followed the process of self isolation. pres. trump: whatever he is doing, he will give you that information. i will make sure they put out a notice. up until now, it was thought that the most vulnerable people were above the age of 60,

70, 80, and that children were not affected by it. all day long on the news today, we have been hearing and seeing this terrible syndrome that some 85 children have had now. three of them have died. what is the task force talking about in terms of that and what should be done? pres. trump: we are seeing that all over the world, very tiny percentage but still, it is the swelling and skin rash. it is a phenomenon that has been brought to everyone's attention a few weeks ago. fx thank you for pointing that -->> thank you for pointing that out. i am a pediatrician and pediatric icu doctor. this syndrome, which is similar to kawasaki syndrome, has been seen in novel coronavirus before. we do know treatments for this.

is interacting actively with the pediatric intensive care unit network to create case definitions and understand how this is going and if there are predispositions. gibbons,ith dr. gary who is conducting many research projects based on that. the assistant secretary for preparedness and response has a team out in several areas, looking at if there are special treatments. we know what the basic treatment is but this is a little bit different than what we normally see. there is activation among all the branches at hhs, working with networks. it is a small percentage, but it is quite frightening. that welects the fact see clotting, strokes. with this newly

emerging syndrome, what do you see to parents who would like to get their children back to school but are now looking at this and are potentially afraid to do that. a tinyrump: it is percentage but we are looking into it very strongly. the admiral has been looking into this. it is a very small percentage and people recover from that. the children recover from that. adm. giroir: most do recover from this but it is a serious and can be a fatal condition. we do want to make sure that parents understand that high fevers, red rashes you may need to contact your health care provider. there are treatments for this. they work very effectively if cotton early, at least for the vast majority of the cases. pres. trump: we are studying

this closely and it has been on the radar for weeks. it has been very rare. but we are looking at it very closely. it is very important to us. i think one of the things we are most proud of, debts per 100,000 people -- deaths per 100,000 people. and the united states are at the lowest rung of that letter, meaning a positive, not a negative. germany and the united states deaths two best in 100,000 people. frankly, to me, that is perhaps the most important number that there is. in the back please. have a few questions. the first one, on the coronavirus, the vice president ofsaid to be in some sort self isolation, keeping his

distance from people. what do you say to americans who say, how can you keep me safe, how can you open the government if even the vice president is self-isolating? pres. trump: the vice president has been tested and he is negative. he was tested yesterday, tested today, and he is negative. he is in very good shape. as far as americans getting a test, they should all be able to get a test right now. that is the problem with a question like that. we go through a whole announcement saying we are number one in the world by far, by a factor of 2, 3, 4. if someone wants to get tested right now as far as the incident -- scarlet: president trump questions from the press on testing for the coronavirus. if you want to continue

watching, you can check it out on life . elon musk says that tesla will define the california county it is in. it will restart production at the facility later today. this is bloomberg. ♪

emily: welcome to "lumbar technology." -- welcome to "bloomberg technology." markets mixed again. latestto digest the moves around the world in response to the coronavirus pandemic. pandemic.